FACULTY OF BUSINESS AND MANAGEMENT

A coursework completed as part of the requirement for

SUBJECT NAME: Retail Operations Management

SUBJECT CODE: BS205

LECTURER/TUTOR: Asst. Prof. Dr. Dazmin Bin Daud

Entitled

ASSIGNMENT TITLE: Group Assignment

ASSIGNMENT QUESTION: Retaining frontliner workers in a retail outlet is very

Submit on

DATE OF SUBMISSION: Week 10

Produced by:
Name Student ID
Tay Gim Hwa 1001850600
Lee Wen Xuan 1001953623
Liew Jun Leng 1001953750
Ng Su Hao 1001954355

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 Table of Contents

1.0 Introduction.........................................................................................................................3

1.1 Frontline workers...........................................................................................................3

1.2 Retail outlet.....................................................................................................................3

1.3 The importance of frontline workers in retail outlet...................................................4

1.3.1 Satisfied frontline workers create satisfied consumers...........................................5

1.3.2 Frontline workers are the face of the retail outlet...................................................5

1.3.3 Frontline workers know and understand the customers’ pain points....................5

2.0 Challenges faced by retailers to retain frontliner workers................................................6

2.1 Working environment....................................................................................................6

2.1.1 Competitive market...................................................................................................7

2.1.2 Working benefit and bonus......................................................................................7

2.1.3 Working style.............................................................................................................8

2.2 Unable to fulfil employees’ needs..................................................................................9

2.2.1 Can’t stopping employee looking for change..........................................................9

2.2.2 Employee may feel bored in short span of time.....................................................10

2.2.3 Unrealistic expectation from the job......................................................................10

References...............................................................................................................................12

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1.0 Introduction

Frontline employees are one of the most important assets of every retail store. However, since

employee salaries in retail stores are calculated differently than in other fields. In addition to

this, they also need to face and communicate directly with a wide variety of consumers to

ensure the best service for consumers. Therefore, it is very challenging for retail stores to

retain front-line employees for a long time.

1.1 Frontline workers

According to Cloud (2022), Frontline workers are employees of a company who offer some

vital service to the public. They have a higher rate of face-to-face interactions with people.

Frontline workers aid in the functioning of society and contribute to the economic prosperity

of the communities in which they live and serve. Frontline workers engage in a variety of

industries or occupations, including health care, education and childcare, transportation,

public safety, retail, and others. Frontline workers can work in a variety of environments,

from retail stores to local neighbourhoods. They may be found in a variety of industries and

throughout all sectors of the economy.

1.2 Retail outlet

A retail outlet or store is simply a store that sells products directly to the consumer; the

products is usually obtained from a distributor or manufacturer. Some retail outlets are large

department shops with a vast selection of products, while others are small specialist

boutiques. They are usually in a fixed location, such as a shopping mall or a street-side

independent storefront. A kiosk is also a type of small retail outlet. Retail outlets also often

have online stores as well. Unless a company is giving a very significant discount, retail

outlets normally sell items in unlimited quantities to customers. The owner may then limit

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quantities to prevent someone from purchasing all of the products to sell at their own retail

shop or from eliminating all inventory for other customers who may visit. Anyone who owns

or runs a retail outlet must be able to monitor stock levels, take inventory, advertise, and

market their business, and offer customer service, among other duties (B. Miller, 2022). In a

retail outlet, the job scope of the frontline workers includes cashiers and salesclerks, as well

as jobs that reflect growth in ecommerce and home delivery, such as stock clerks, warehouse

packers, and delivery drivers (Pamela & Kelly S., 2022).

1.3 The importance of frontline workers in retail outlet

Frontline retail workers have typically been vital to their industry. They ensure that orders are

completed, customers are pleased, and the companies they work for are effectively

represented. In recent years, their importance has been further highlighted. With 85 percent of

shoppers still shopping in physical stores, frontline retail workers demonstrated how their

work can make or destroy a business. Despite their critical position, frontline workers are the

least engaged of all employees. According to the research, the majority of retailers also

struggled to retain good employees. Due to labour constraints, 68 percent of retail stores are

failing to fulfil sales targets, and the majority are concerned about burnout and exhaustion

among their frontline workers. These figures demonstrate that every retailer must prioritise

engaging frontline retail workers (LiveTiles, 2022). For example, many frontline workers’

mental and physical health suffered during the pandemic. This might be due to the large

number of people they have to physically engage with, or it could be owing to the significant

stress involved in adjusting how they operate to reduce health risks while meeting business

needs during a tough period (Maggie, 2022). According to Cristian (2022), there are several

reasons why frontline workers are crucial to a retail outlet.

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1.3.1 Satisfied frontline workers create satisfied consumers

Satisfied frontline workers produce satisfied customers. Businesses that concentrate their

efforts on frontline workers invest in the individuals who provide customer service and

aggressively convert leads into customers. When frontline workers are satisfied and happy, it

leads to better customer service, they become more productive, which boosts the retail

outlet's profitability, and they take better care of the customer, which generates a better

customer experience and improves customer loyalty.

1.3.2 Frontline workers are the face of the retail outlet

Frontline workers are the face of the retail outlet. This means that the actions or behaviour of

frontline workers have a direct impact on the company's vision, mission, culture, and values.

As a result, it is more important than ever to ensure that these workers are engaged and

excited about their jobs. Any action or behaviour they perform will have an impact on the

retail outlet's image and reputation.

1.3.3 Frontline workers know and understand the customers’ pain points

Every day, frontline workers interact with customers and get first-hand information from

these interactions. Frontline workers that interact directly with customers, observe their

behaviour on a daily basis and have significant data and insights to provide. As frontline

workers are familiar with the customers, listening to their voices and acting on their feedback

gives the business a significant advantage.

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2.0 Challenges faced by retailers to retain frontliner workers

According to Forbes magazine, there is a 60% of business have had to hire new employees

since start of the pandemic (2022). The new worker has to face unprecedented challenges

when it comes to on-the-job training and learning of vital new safety protocols. Frontliner

which is not only for those doctor and nurse who keep paying hard working to rescue during

the Covid-19 pandemic, while the other frontline service included the banker, storekeeper,

and warehouse operations. People who working at high risk at that time to ensure that the

main essential service of a country has been maintain and ensure the supply for essential is

enough. Customers are seeking inspirations from retailers that convey trust, authenticity, and

transparency. thus, the challenges to retailer that to maintain and retain staff continue work in

the retail store. Had there been 2 years of hard time for retailer to maintain their business.

Now a days, people prefer and encourage the work life balance working culture and retailers

which facing issues to retain their staff. Thus, here some of the challenges that to retain the

staff in the retailer store.

2.1 Competitive Working Environment

The unhealthy working environment will spread out negative vibes to the workers and make

the staff feel to leave and also not willing to push sales and communicate with customers.

Retail staff is directly facing with customers, their attitude and image should be good enough

to provide a confident image to their customers. A negative vibe working environment will

cause staff feel fatigue and demotivated (2022). Thus, it may cause the sales cannot reach the

target and staff is leaving in few months later. For example, a bottle retailer who containing a

negative vibe supervisor to manage the retail store, the staff over the store provide rude

attitude to customers and broke the image of the retail store. Thus, the retail store cannot hit

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sales target as well. Therefore, to avoid working environment got negative vibe, retailer

should provide some bonding and training to build a positive vibe environment and

encourage them to score target.

2.1.1 Competitive market

Other than, the environment issues the competitive market also may be the challenges to

retailer. Since only some of the outstanding staff and salesperson is experienced and good

attitude, they may receive better offer from another competitor (Juneja, n.d.). As a retailer

should take action to ensure the staff will stay with u through increase staff’s satisfaction for

the job/task. Based on the research, people will only be loyal on things that make them feel

achievement, like win in a competition and get a satisfaction benefit and bonus in their

working place. Although, the competitor may offer better option, the loyalty staff may

discuss with retailer and to stay back in the retail store with more satisfaction benefits. In this

competitive market, challenges as a retailer are to be outstanding and provide attractive offer

and good working environment to attract staff to join and stay in the retail store. However,

some of the experienced staff might leave the retail store and joined others retailer which

because to satisfy their own’s needs. Human never satisfy with their current situation, and

they might find another higher level to achieve it. Thus, it is the challenges for retailer.

2.1.2 Competitive working benefit and bonus

Another retailer challenges at retailer sides are about the offered benefits and bonuses do not

satisfy by the staff. Workers do not satisfy will not pay attention and hard working in their

job, they will look for better offer and leave the current retailer. Also, retailer provides a non-

attractive paid and benefits will not be able to retain workers to work with retailer (Juneja,

n.d.). Workers/ staffs hope to get high paid and good benefits like medical leave, urgent

leave, company trip, bonus, and some attractive offer to motivate them and work hard in their

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work. Workers do not satisfy will the retailer benefits may cause the store sales drop too, due

to workers are not motivated. Some the retailer cannot fulfil the expectation of workers also

may be the reasons they leave the retailer and look for other company. For instance, retailer A

provide only salary and 10days annual leave, Retailer B offer salary, 14 days annual leave,

bonus, and medical subsidiary. The retailer B can get more attraction from others experienced

staff to join they retail store.

2.1.3 New Trend of Working style

After 2 years of pandemic period, working from home is another type of working style that

other than the traditional workstyle which back to office every weekday. Nowadays, people

prefer working from home which can save more time and able to arrange time themselves.

This will be a challenging to retailer because work from home is hard to happens in retail

industry. Thus, retailer might to change another way to attract workers and staff to retain in

the store. For example, allow workers work from home once a week to handle online

platform customers as a customer service, it can be a swift turn and fair to every staff and

workers. Through the changing methods of working style may attract staff to retain in the

industry.

Therefore, retaining frontline workers in a retail outlet is a very challenging and directly face

customers’ service. Thus, it is important to a retailer, they represent the name of retail store.

As a responsible retailer manager and supervisor should as a role model to provide

professional knowledge and good communication skills with customers to gain customers

loyalty and increase branch sales. Thus, to overcome all the challenging issues and problems,

retailer should make changes and adjustment to fulfil workers and customers need and build

up platform that 3 parties is satisfied with. For example, make a bonus system to encourage

workers or salesperson to hit sales and get attractive commission and request feedback from

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customers and award staff that provide satisfaction service to customers. So that the retail

store can be outstand in the market and industry, workers and staff also will retain in the

industry.

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2.2 Unable to fulfil employees’ needs

One of the main causes for an employee to job turnover is unsatisfied about the salary paid.

Every business has a budget pay that can be increased for each employee up to a limit but not

beyond that. When an employee quotes a value that is incredibly high over an organization's

budget and is simply unwilling to negotiate, retention becomes a challenge. (Juneja, n.d.) The

company cannot afford to enrage the other employees, and the company needs to take care of

their benefit. To avoid conflict between employees or their mental state will not be balanced

about the salary paid, the salary paid of those working at the same level should be somewhat

comparable. (Beckett, n.d.) At every job, a high potential person is always the centre of

attention, but one they shouldn’t take any unreasonable advantage. The employees should be

conscious of the management’s restriction and quote anything that fits the firm's budget or

not. It becomes difficult for the organisation to retain an employee if they are adamant about

a particular number. Always keep in mind that there is an opportunity for bargaining but

reasonable bargaining and understanding company situation are also important. (Juneja, n.d.)

2.2.1 Can’t stopping employee looking for change

Stopping employees from looking for a change in the existing environment, when there are

plenty of options, is a difficult task. Every company makes every effort to hire workers from

rival companies and offers them lucrative possibilities to do so. Employees will gain a desire

to leave their current position and join the competitor as a result of their increasing thirst for

money and position. In such situations, no amount of counselling is effective, and retaining

staff is a nightmare. So, the company needs to evaluate whether the employee who wants to

leave is a high value or low value employee, if he or she is a high value and he or she may

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help the company make big steps in future, the company may try their best to avoid a talented

employee turnover.

2.2.2 Employee may feel bored in short span of time

Some people have a propensity to become bored quite quickly. They could first find work to

be super exciting, but after a while they feel bored and looking for a change. In this kind of

situation, the management has a hard time persuading the staff. Employees must also

recognise that every organisation has some sort of issue, and as adjustments are necessary

everywhere, why shouldn't this be true of the current company? Finding out exactly what is

going on in a person's thoughts becomes extremely challenging for the HR Department. To

make things easy for management, employees should express their thoughts clearly.

Employees that feel unsupported may decide to leave their jobs. They may take on more

work than their teammates, lack the resources necessary to carry out jobs efficiently, or feel

that management doesn't care about their welfare. Companies may ask the staff what

assistance you can offer to make their duties simpler and more fulfilling because when you

appreciate your people, you also value their time and effort. (Shetty, 2015)

2.2.3 Unrealistic expectations from the job

Employees who have unrealistic expectations for their jobs are also more willing to seek for a

change. (Juneja, n.d.) Unrealistic expectations cannot possibly be resolved. A person needs to

be mature enough to realise that his or her employment won't offer him or her the same level

of comfort as his or her home. When people from various backgrounds work together, there

may be some little misunderstandings, but one should not make a big deal out of them. A

person shouldn't search for a change because of trivial problems. One must do his or her very

best to remain with it for a considerable period of time and disregard little concerns if he or

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she wants to make an impression on the corporation. (Gupte, n.d.)For example, if the

warehouse manager of the retail shop feels that he is busy and needs help from the cashier,

but cashier have their own responsibilities to take care of their counter, this is an unrealistic

expectation from the warehouse manager. A job position has its own task it may include

difficult or easy.

3.0 Conclusion & Recommendation

Employees are one of the most important assets of a retail store. If a retail store has a lot of

high-quality products, but no employees are responsible for promoting or selling it, the retail

store will go out of business at any time. However, the willingness of each employee to stay

and work in the store depends on various internal and external factors such as employee

benefits, vacations, bonuses, work environment, boss-employee relationship, etc. In addition

to this, it also depends on the situation between the employee and the boss who wants to stay

on the front line of the retail store. From a boss's perspective, employees need to have

excellent sales skills in order to have better benefits, treatment, or bonuses, but not every boss

will tell employees what they need to really improve, thereby changing work capabilities and

performance. Then, excellent employees are not readily available, just like some employees

can clearly know what position they should put themselves in and what kind of benefits they

should ask for, while some employees will ask the boss to provide some unrealistic benefits

or welfare. These can make the boss feel embarrassed and have to let them go. In conclusion,

only when retail store owners and employees communicate continuously and improve

together can they increase the chances of retaining front-line employees. This is because boss

of retail store understands the needs of the employees, and the employees also understand the

expectations of the boss, thus changing the atmosphere of the work environment and

providing better services to consumers.

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 References

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Cristian, G. (2022). 5 Important Reasons to Empower Your Frontline Staff - Beekeeper.

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Juneja, P. (n.d.). Challenges in Employee Retention.

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Beckett, S. (n.d.). The organization needs to take care of the interests of the other employees

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